Suraj Estate Developers On Track To Clock Rs 850 Crore Pre-Sales Target, Says Director

Suraj Estate Developers Ltd. is on track to achieve its Rs 850-crore pre-sales guidance for the financial year 2025, with the launch of two big projects in the second half, according to the company’s whole-time Director Rahul Thomas.

The real estate developer's pre-sales guidance for the current fiscal marks a 76% year-on-year rise from Rs 483 crore in the preceding fiscal.

Thomas told NDTV Profit that the company is very confident of achieving its guidance. “I can only tell you that we are poised for good growth and are on the right trajectory for achieving the target,” he said.

For the second half of the current fiscal, Suraj Estate Developers plans to launch projects worth Rs 1,150 crore.

“Our commercial project in Tulsi Pipe Road will be one of the biggest commercial projects that we will be doing. Also, there is one launch in Shivaji Park in the residential segment,” he said.

Recently, the real estate company had raised Rs 343 crore—Rs 100 crore through share warrants and the balance via preferential equity shares. Talking about the fundraiser, Thomas said that the proceeds will be majorly used for land acquisitions.

“The primary goal is to use 40% of these proceeds for land acquisition that we have already identified, the balance will be for working capital requirements and general corporate purpose,” Thomas elaborated.

Talking about pricing in the real estate industry, Thomas acknowledged that prices have gone up. “Pricing overall in the industry has gone up in the residential segment. Our average realisation on a quarter-on-quarter basis has also gone up. But it’s a fine balance (that) we have to strike between velocity and pricing,” he said.

The top executive however favoured velocity, which is the time taken to complete a project over pricing realisation. Explaining the reason behind this idea, Thomas said that Suraj Estate Developers operates in segments where the pricing realisations are already good.

“We already stand with good margins. So velocity is key and also to make sure we launch all our projects planned for H2,” he said.

Shares of Suraj Estate Developers on Wednesday closed 0.20% lower at Rs 731 apiece on the NSE. In comparison, the benchmark Nifty 50 closed 0.15% or 36.60 points lower at 24,435.5.